Income Taxes (Tables)

12 Months Ended

Nov. 30, 2017

Component of income tax benefit (expense) in the consolidated statement of operations

The components of the income tax expense in our consolidated statements of operations are as follows (in thousands):



	Federal			State			Total
2017
Current	$	(2,800	)	$	(3,000	)	$	(5,800	)
Deferred	(86,300		)	(17,300		)	(103,600		)
Income tax expense	$	(89,100	)	$	(20,300	)	$	(109,400	)

2016
Current	$	(1,900	)	$	(1,000	)	$	(2,900	)
Deferred	(28,700		)	(12,100		)	(40,800		)
Income tax expense	$	(30,600	)	$	(13,100	)	$	(43,700	)

2015
Current	$	(1,400	)	$	(2,000	)	$	(3,400	)
Deferred	(35,900		)	(3,100		)	(39,000		)
Income tax expense	$	(37,300	)	$	(5,100	)	$	(42,400	)

Components of deferred tax liabilities and assets

Significant components of our deferred tax liabilities and assets are as follows (in thousands):



	November 30,
	2017			2016
Deferred tax liabilities:
Capitalized expenses	$	98,147		$	116,551
State taxes	59,174			65,766
Other	313			286
Total	157,634			182,603

Deferred tax assets:
NOLs from 2006 through 2017	236,273			350,329
Tax credits	208,841			197,766
Inventory impairment and land option contract abandonment charges	139,737			176,555
Employee benefits	100,200			102,321
Warranty, legal and other accruals	60,238			51,448
Capitalized expenses	39,195			36,950
Partnerships and joint ventures	14,784			16,293
Depreciation and amortization	7,333			8,530
Other	8,270			6,196
Total	814,871			946,388
Valuation allowance	(23,600		)	(24,800		)
Total	791,271			921,588
Deferred tax assets, net	$	633,637		$	738,985

Income tax benefit computed at the statutory U.S. federal income tax rate and income tax benefit (expense) provided in the consolidated statements of operations

The income tax expense computed at the statutory U.S. federal income tax rate and the income tax expense provided in our consolidated statements of operations differ as follows (dollars in thousands):



	Years Ended November 30,
	2017					2016					2015
	$			%		$			%		$			%
Income tax expense computed at statutory rate	$	(101,499	)	(35.0	)%	$	(52,260	)	(35.0	)%	$	(44,462	)	(35.0	)%
Tax credits	6,227			2.2		4,447			3.0		6,926			5.5
Valuation allowance for deferred tax assets	1,200			.4		12,982			8.7		3,356			2.6
Depreciation and amortization	362			.1		1,842			1.2		3,183			2.5
Basis in unconsolidated joint ventures	74			—		(86		)	(.1	)	1,617			1.3
NOL reconciliation	(2,210		)	(.8	)	(3,691		)	(2.5	)	(3,379		)	(2.7	)
State taxes, net of federal income tax benefit	(14,450		)	(4.9	)	(7,511		)	(5.0	)	(5,155		)	(4.1	)
Other, net	896			.3		577			.4		(4,486		)	(3.5	)
Income tax expense	$	(109,400	)	(37.7	)%	$	(43,700	)	(29.3	)%	$	(42,400	)	(33.4	)%

Reconciliation of the beginning and ending balances of the gross unrecognized benefits

A reconciliation of the beginning and ending balances of gross unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands):



	Years Ended November 30,
	2017		2016		2015
Balance at beginning of year	$	56	$	56	$	206
Reductions due to lapse of statute of limitations	—		—		(150		)
Balance at end of year	$	56	$	56	$	56